The effect of environmental cross compliance regulations on Swiss farm productivity

Raushan Bokusheva (), Subal Kumbhakar and Bernard Lehmann

No 91828, 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland from Agricultural Economics Society

Abstract: This paper analyzes the evolution of Swiss farm productivity during the implementation of environmental policy reforms. We employ a production model formulation with technology parameters defined as the functions of subsidies, as well as individual farm characteristics. Our estimates for two groups of farms – milk-producing and crop farms – show that introducing environmental regulations induced serious changes in the production technology and productivity of inputs, especially of land, labor and fertilizer. The overall effect of the subsidies on the production output has been found negative. At the same time, we find that farms do not use their resources optimally, which indicates some deficiencies in structural adjustments, primarily in the land and labor markets.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 23
Date: 2010-03-29
New Economics Papers: this item is included in nep-agr, nep-eff, nep-env and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc10:91828

DOI: 10.22004/ag.econ.91828

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